Supply, Demand, And Elasticity Essay

997 Words Nov 13th, 2016 4 Pages
Supply, demand, and elasticity can be one of the most fundamental elements in economics which linked by marketing acts. Begg (2014: 43) states that demand is the amount of goods or services the buyers are willing to buy at an acceptable price. And the supply is the amount of goods or services the producers are willing to sell at an acceptable price. The main purpose of this essay is firstly explaining what is supply, demand and elasticity and how they influence the market. Then take Hanjin shipping as an example to analyze the causes and consequences of receivership. Hanjin Shipping, one of largest container line of the world, has been unprofitable for several years ( Fortune, 2016). On 31st August 2016, Hanjin Shipping applied for receivership because of the big debt. In fact, in these years, the low demand of shipping causes the low revenue and the receivership of Hanjin affect the shipping market. The main target of the market is to seek out what consumers want and able to afford. A customer’s choice depend on many factors: price, product, promotion and place. Furthermore, demand curve which generally shows a downward-sloping tendency is be used to analyze and show the relationship between consumers’ decision . The demanded of the consumer will change when the price of a product changed (others equal). It usually based on the law of demand andThis relationship is known as a movement along the demand curve which shows by figure 1 and it can also be explained by…

Related Documents